10 steps to financial success

Real world riches start with the 10 steps to financial success, either during college or right after. Think about it you've got your college diploma in your hand, and it signifies your entry to the "real world". Is it too early to start putting your soon to be good income into a wealth creation strategy? You'll be happy to know it isn't, and you can use the ideas listed below to get what you want.

10 Steps to Financial Success - How to Become Rich Right after College

Have a goal. Your 10 steps to financial success should always start with goal setting. Without it, you will have no plans or direction for achieving financial success. Goals must be SMART - specific, measurable, attainable, realistic, and time bound. Know the definition for financial success for you.

Do what you love. You will become rich more quickly and easily if you're doing something you love. When you get paid for doing something you have fun with, you feel motivated to work harder even if there is no significant increase in motivation or rewards. You also don't count the hours till you can leave your job because you're already enjoying yourself.

Pay off your debt. It's never too early to start clearing your name from debt. Know your credit score and do what you can to eliminate debt from your life. It's not bad to be in debt, but only if it's not earning as much interest as it would with credit cards. Also, it's not bad if you used it for investment purposes and the promised returns are greater than what you've borrowed.

Be healthy. You might wonder what your health has to do with financial success, but apparently, it has a lot to do with it. If you're healthy, you have lower medical expenses and insurance payments. You'll also see your total expenditure decrease if you cut back on smoking, drinking, and other health vices.

Save more and spend less. The fifth of the 10 steps to financial success is defined by practicality. You can't be rich if you don't know how to be practical. Don't spend more than you're earning and learn how to invest your money.

Take risks. You'll get nowhere if you always want to wait for things to happen rather than making things happen. Opportunities come once in a lifetime so grab them when they come your way!

Work hard. Financial success doesn't come to your life for free. You must be willing to sweat blood and tears for it.

Make your money work for you. The eighth commandment of the 10 steps to financial success is actually based on one of the main principles behind the success of the Rich Dad Poor Dad series from Robert Kiyosaki.

Be generous. Reward those who have helped you. If giving something another person needs won't cost you anything then give it! Share your wealth and you'll definitely see it multiply!

Be ethical. Lastly, be fair to other people. Treat them honestly. Do things by the rule even if you know that no one's going to catch your hand in the cookie jar. Ethics might seem to lower your profit margin at the start, but it's actually increasing your profit in the long run because more people are inclined to trust in you based on your actions.

These 10 steps to financial success may seem too simple, but it will definitely build you a solid financial foundation for your life. You may receive other seemingly more complex tips for financial success but when you break them down, you'll find all of them reverting back to one of the 10 steps to financial success stated here. So really, why complicate things when you don't have to?

TOP 10 ways to get affordable health insurance!!!

The statistics are startling when it comes to the outrageous uninsured Americans and the numbers keep getting bigger. But what do you do when you don't have a job and can't get affordable individual or family health insurance from an employer? Or, what about all the families that have jobs but still cannot afford the health insurance offered by their employers and can't find an option for affordable health insurance?

There are low cost health insurance options out there that, in fact, many Americans have already implemented and are beating the rising battle against being uninsured. In addition, more individual and family health insurance options are being brought into the market as the rising number of uninsured Americans increases. This is great news for people who just don't know what to do when it comes to obtaining low cost and affordable health insurance. Below are the top 10 ways Americans are getting the affordable individual and family health insurance coverage they need.

1. COBRA: First, it is best to start with the Consolidated Omnibus Budget Reconciliation Act (COBRA). If you are not employed you may be eligible to continue your previous employers' health insurance through COBRA. This also applies to children going off to college... you also may be able to continue on your parent's health insurance coverage through COBRA. This is a very good option for people who may have lost their job and are still undergoing medical treatments. If you were to switch to another insurance plan, your current medical treatments may not qualify under the new health insurance plan. But.. WARNING! This will not be an affordable health insurance option. The premiums will be much higher and you may be able to better afford one of the below options first. It is best to gather all your available health insurance options and pick the best health insurance plan for you.

2. Workers' Compensation: Many people don't realize that they may be covered under their state's Workers' Compensation program. If you are being treated for any work related injury, your employer must offer you treatment under their Workers' Compensation program.

3. Medicaid: Don't automatically think that since you have a job you won't qualify for Medicaid. Medicaid will pay health care expenses for low-income families and individuals. Each state sets the eligibility requirements so qualifying for the program is state specific. If you are working and still don't have enough to buy affordable health insurance, it doesn't cost you a penny to see if you or your children qualify for Medicaid so it is always best to check Medicaid first before moving on to the next options. And, there is good news about Medicaid... more and more states are adding health care benefits for low-income families so if you don't qualify now, keep informed of your state's Medicaid and health insurance laws because you may qualify in the future.

4. Medicare: Most people know if they qualify for Medicare or not, but I need to add it to the list just to make sure it is not overlooked. Medicare is provided by the government and administered by the Social Security Administration. If you are sixty-five years old or older you would qualify for Medicare. You may also qualify if you are getting Social Security

5. State High Risk Health Insurance Pool: If you are turned down by individual health insurance companies because of pre-existing conditions, your state may have a high risk health insurance pool you can obtain health insurance from. It may not be an affordable health insurance choice, but it may be the only individual or family health insurance option available to you that will pay for your pre-existing conditions if you don't qualify for COBRA(see #1 of this list).

6. Individual and Family Health Insurance: This is where you just go to an insurance company and buy individual or family health insurance the same way you would by home or auto insurance. These plans work similar to what an employer would offer their employees but would be more expensive since you don't get the cheaper group rate and you would not have an employer contributing to some of the costs. Another drawback of individual and family health insurance plans is that there is usually a pre-existing conditions clause (they may not cover pre-existing conditions or may not cover them until after a certain period of time) and a medical exam. If you do want to choose an individual or family health insurance policy, remember the higher the deductible you choose the lower your premium will be, but the more you will pay out of pocket when you go to the doctor or hospital. Getting a high deductible "emergency" policy is a better way to maintain a low cost health insurance plan and keeping a Health Savings Account for smaller health issues will probably save you money in the long run.

7. Short Term Health Insurance Coverage: This is a great affordable health insurance option for someone in-between jobs or who knows they will be starting a job soon. Short-term health insurance coverage works the same as an individual health insurance policy (see #6 above), but you will only be covered for a specific amount of time which would keep your premiums down. This is also a good option for someone who needs time to examine their individual and family health insurance choices but still would like to be covered quickly to avoid any coverage gaps.

8. Group Insurance from Organization Memberships: This is often an overlooked source of affordable or low cost health insurance. Some people are members of specific organizations that offer health insurance coverage. For example, people who are members of The Sacramento State Alumni Association can obtain a variety of insurance choices. Although these organizations often do not help pay the health insurance premiums like an employer would, the rates would be lower because of the group discount. So, figure out what organizations you are a member of and see if they offer group health insurance. You could also research organizations that provide group health insurance and join those groups, or even ask current organizations you are a member with to offer group health insurance. They may just not realize they could offer a plan to their members.

9. Group Health Expenses Sharing Plan: This is not insurance but works similar to it. This is when a group of people pool their money together and pay each others' health expenses... they pretty much become their own insurance company. The contributions are pooled together and usually invested in order to accrue interest on the pooled funds. It works well when there are a lot of people who contribute and everyone is only using the money for major medical expenses. There are religious groups that use this model successfully. Medi-Share is a popular health expense sharing plan and has been around since 1993. If you are interested in this option make sure you choose a group that has been around for a long time and has a good track record.

10. Health Insurance Discount Cards: Again, this is also not an insurance plan but can be a good source for getting low cost health services. There are many companies who offer affordable health insurance discount cards and they work like this: You pay a small monthly fee for a membership card and when you go to the doctor or hospital you will get a discounted rate on your services. These are not for everyone and one thing you have to remember is that if you had a catastrophic health crisis the discount on these cards is not a lot, so you would still have an enormous amount of bills left to pay. But, on the other hand, some people do choose to go this route and at least are able to get a discount on their doctor bills. These cards should not be used in place of insurance and if you choose this option you should still be working towards getting health insurance in the future.

How to invest when you are broke?

How do you start investing if you're barely scraping by?

Say you're making $25,000 a year and know that (along with feeding yourself, paying for gas, rent, etc.) you need to start thinking about your future.

It pays to do that, because even small amounts add up surprisingly fast if you invest on a regular basis. And Uncle Sam will even kick in free money on top of that.

For instance, over the past 10 years, the stock market, at least as measured by the S&P 500 Index ($INX), has returned around 8%, on average, annually. Say you start with nothing and invest only $10 per week. If you pick an investment that only matches the S&P's 8% return, after 10 years, you'd have around $8,000. You have $10,000 if you got lucky and picked an investment that churned out 12% average annual returns.

Even better, if you're a poor person, the government rewards you by refunding as much as half of what you put in. Singles earning up to $15,000, head of households earning up to $22,500 and married joint filers earning up to $30,000 get a credit of 50% of funds contributed to an IRA or 401(k). That means, for instance, if you invested $1,000 in your 401(k) last year and qualified for the credit, your refund would be $500 larger. (A dedicated saver could turn right back around and plow that $500 into a Roth IRA as well.)

One big caveat: Investing in small amounts isn't about investing in individual stocks. All stock investors, no matter how talented, eventually pick a clunker, a stock that drops 25% or 30% before your first cup of coffee in the morning. That's not so bad if you own 20 stocks. But it would be a disaster if you hold only four or five.

Instead, mutual funds and exchange-traded funds make more sense for small investors. Richard Jenkins, editor-in-chief of MSN Money, explains here how to use ETFs. Below, I'll explain how to get started using mutual funds.

Why funds?

For starters, mutual funds give you automatic diversification. Most hold dozens, if not hundreds, of stocks. So, when one goes south, its impact on the portfolio is minimal.

Also, fund managers have advantages over individual investors. It's their day job, and because their trading generates huge commissions, they have access to better information than individual investors.

The problem for small investors is that most mutual funds don't want your money. Why? Simple: Funds get paid by taking a percentage of their investors' money in the form of management fees. It costs them just about as much money to keep track of your account and send you monthly statements as its does for some fat cat that's plunking down $100,000 at a whack.

So most funds establish minimum investing amounts that preclude small investors. Many require you to invest at least $3,000 to open an account, and many ask for much more.

Fortunately, I found a few fund companies (called fund families) that believe the story about small acorns leading to big trees and do welcome beginning investors.

By the way, you have to buy these funds directly from the fund company. Purchasing funds via stockbrokers, even the deep discount types, doesn't work for small investors. Most ask for a substantial check to open accounts. But, that's not a problem. The funds I'm going to describe all accept investments from individuals.

About loads

Before I get into the details, I need to tell you about the difference between load and no-load funds.

Originally, all mutual funds were sold through full-service stockbrokers and financial advisers. Those folks have to get paid, and their commissions are called "loads." Then, in the 1950s, funds that marketed directly to investors began to appear. Since there was no middleman involved, there was no need for the loads, hence the name "no-load" funds.

Loads typically run close to 6% and considerably reduce your return on investment. While it makes sense to pay for good advice, I'm going to show you how to pick your own funds. So there's no point in paying a load.

Automatic payment is key

Only a few fund companies cater to small investors, and for those, agreeing to an automatic investment plan is the key that opens the fund-investing door.

Automatic investing means that you agree to invest a fixed minimum amount every month. However, simply promising doesn't cut it. You have to give the fund company permission to deduct the agreed amount from your bank account.

Each company has its own rules about how much it takes to start a fixed investment plan, and the required monthly investment.

Here's a list of the fund companies I found that accept small investors, and their rules.

Amana funds

Minimum initial investment: $250

Minimum monthly investment: $25

Amana operates two funds, Amana Trust Growth (AMAGX) and Amana Trust Income (AMANX), that invest according to Islamic principles. The funds avoid investing in businesses such as liquor, pornography, gambling and banks. Since collecting interest is prohibited, Amana funds avoid bonds and other fixed-income securities.

Hodges Fund

Minimum initial investment: $250

Minimum monthly investment: $50

Hodges operates a single fund, called simply Hodges Fund (HDPMX).

Steward funds

(formerly Capstone Funds)

Minimum initial investment: $25

Minimum monthly investment: $25

Steward operates four stock and two bond funds following biblical principals and consistent with a Christian lifestyle. The funds avoid investing in companies materially involved in pornography, abortion, alcohol, gambling or tobacco.

Minimum initial investment: $100

Minimum monthly investment: $100

Originally serving only teachers and other public employees, TIAA-CREF operates five stock mutual funds that are open to all investors. Finding them on TIAA-CREF's site is more than a little tricky. From TIAA-CREF's home page, select Fund Research, and then Mutual Funds. Then scroll past Retail Mutual Funds to Retail Class -- Institutional Mutual Funds.

Picking the best funds

Not all funds are created equal, and just because a fund will take your money doesn't make it a good investment. Below are a few measures that will help you pick the best funds. You can do most of your research right here on MSN Money.

Morningstar star rating

Morningstar rates funds by comparing each fund's historical returns (gains) to its historical volatility. The ratings range from one to five stars, where five is best.

Returns reflect how much money you would have made holding the fund for a specific period. Volatility is a measure of how much the fund's share price bounced around along the way. Morningstar's star rating compares each fund's historical returns to it historical volatility. The funds with the highest return to volatility ratios get the highest ratings.

While history is no guarantee, I've found that fund managers with a strong record of outperforming the market tend to continue their winning ways. Start with five-star rated funds. If you find your list is too narrow, consider adding four-star funds, too.

Morningstar risk rating

Risk is the enemy of all investors, small or large. So, I'm going to advise you to check risk two ways, starting with Morningstar's risk rating.

As I mentioned above, Morningstar's overall star rating compares return to volatility. A shortfall of that gauge is that volatile funds can still get high scores if their returns are high enough. By checking Morningstar's risk rating separately, you can rule out funds in that category.

Morningstar separates funds into five risk categories: low, below average, average, above average and high. Avoid "above average" and "high" risk funds.

Standard deviation

Morningstar's risk rating compares a fund's volatility to other funds in its same category (e.g. small-value, banks, tech stocks, etc.). So if a fund is in a volatile category, say technology, Morningstar might rate it as low-risk even though it's risky on an absolute basis.

Standard deviation is similar to Morningstar's risk rating, except it measures historical volatility on absolute basis. By adding standard deviation to the mix, you can rule out Morningstar low-risk-rated funds when they are, in fact, risky.

Standard deviation values run from as low as one to as high as 30 and sometimes higher. The higher the number, the riskier the fund. In my experience, it's best to rule out funds with values above 20.

Most of the fund companies catering to small investors operate only a few funds, so you can check the Morningstar ratings and standard deviation on MSN Money's Fund Portfolio report as I've done here for Vanguard 500 Index (VFINX). As you build your nest egg, diversify your money across different funds to decrease the chance of losing money if one fund happens to go sour.